New rules on cash withdrawal: Note exchange stopped at banks
New Delhi: The Narendra Modi government has changed norms on cash withdrawal and deposits following the ban on Rs 500 and Rs1000 notes. As of 25 November, exchange of old notes at banks has been stopped, though deposits will continue.
Here is what has happened so far:
• The exchange of old currency notes over the counter at banks has been stopped. Exemptions for payment of utility bills , payments at petrol pumps and pharmacies using old notes will continue till 15 December. However, payments can be done only through old Rs500 notes
• The Reserve Bank of India (RBI) on Friday clarified that it will allow exchange of old Rs 500 and Rs 1,000 notes at its counters up to the limits applicable per person, even though this facility has been withdrawn from bank branches.
• The government on 23 November asked banks to waive the merchant discount rate (MDR) or transaction fee charged on debit card payments until 31 December to encourage more customers to use digital transactions.
• The government on Wednesday announced that it will provide Rs21,000 crore to district central cooperative banks (DCCBs) through NABARD to provide loans to farmers to meet their credit requirements during the winter crop season.
DEA secretary Shaktikanta Das said in a press briefing: “The NABARD and the Reserve Bank of India (RBI) have been instructed to make cash available to the DCCBs to ensure farmers get credit and certain amount in cash.”
• Service tax will not be levied on tickets booked through the IRCTC website from 23 November to 31 December. Rs20 is levied as service tax on Sleeper and Rs40 on AC classes for booking tickets through IRCTC.
• The RBI on Tuesday asked banks to take stern action against officials indulging in fraudulent practices while exchanging or depositing the invalid currency notes.
• RBI imposed stiff conditions for withdrawal of up to Rs 2.5 lakh in cash from bank accounts for weddings, saying the money can be withdrawn only from the credit balance as on November 8, the day demonetisation was announced. While notifying norms, RBI said the cash withdrawn should be used only to make payment to those persons who do not have bank accounts and the names of such recipients should be mentioned while applying for withdrawal of the cash.
• Government employees belonging to Group-C on Monday started receiving Rs10,000 in cash as advance of their salary for the month of November.
• The Reserve Bank of India (RBI) late on Sunday stated that banks will have to continue with the withdrawal limits on automated teller machines (ATMs) till any further notice.
• The ATMs recalibrated to dispense the news Rs2,000 currency notes will be allowed to withdraw up to Rs2,500 per day, while the limit remains set at Rs2,000 per day on ATMs yet to be recalibrated to dispense the new currency notes.
• RBI on Monday provided an additional 60 days for repayment of housing, car, farm and other loans worth up to Rs 1 crore.
• The income tax department has warned people against depositing their unaccounted old currency in someone else’s bank account. The newly enforced Benami Transactions Act carries a penalty, prosecution and rigorous jail term of a maximum seven years for violators.
• Banks received Rs.5,44,571 crore in deposits and old notes submitted for exchange from the time banks reopened after currency demonetization till 18 November, the Reserve Bank of India (RBI) said.